ALLIES’ WAR DEBTS

Hokitika Guardian, 22 October 1930, Page 6

ALLIES’ WAR DEBTS

MORATORIUM MOOTED

l United Press Association—By Electric Telegraph.—Copyright.] LONDON, October 20. Considerable interest has been aroused here by “The Times’s” Washington correspondent’s report that the United States Treasury and United States banking leaders are discussing a draft plan for a possible moratorium on the Allied debt payments to the United States.

The only comment here is that' Britain will continue to repay her debts without the slightest suggestion of revising the undertakings, and that initiation of moratorium must come from the United States,

Latterly, however, it has been significantly observed in London that the United States’ vast gold reserves, coupled with the falling of commodity prices may compel her to examine the position. It is stated that the German financier, Herr Schacht has met Mr Stimson (IJ.S.A. Secretary of State) and that the latter now meets President Hoover and U.S.A. Treasurer, Mellon.

“The Times’s” correspondent believes that Germany will be forced to declare a moratorium on her conditional reparation payments. TOO MUCH GOLD!. ENGLISH SUGGESTION. I LONDON, October 21. In reference to the revival of talk of a war debt moratorium, the “Daily Telegraph” says: “It is not inconceivable that American banking opinion may have arrived at the conclusion that the American accumulation of gold from Europe, including between 80 and 90 millions sterling worth per year in respect of the war debt payments, is preventing the impoverished Continent from buying American goods, and that, hence, it is largely responsible for the 'jfrowiim unemployment in the United States. This situation would be eased if the further importation of gold amounting to one hundred and fifty million sterling during the next two years, could he checked.”

The “Financial Times” says: “The best economists see clearly the inevitability of a rearrangement of the war and its reparation debts. They stand in the way of a world recovery, and must hulk larger as time passes..... FRENCH VIEW. i PARTS, October 21. There is no doubt here that Germany intends to. claim a moratorium, in which event the question will arise of France’s repayments to America. GERMANY WANTS RESPITE BERLIN, October Pl'i The newspaper “Germania.” says: The question as to how long Germany can continue to transfer annuities is being eagerly ventilated.